Retaggio Industries Limited, a prominent player in the B2B jewellery manufacturing sector, is set to launch its Initial Public Offering (IPO) on March 27, 2025. The company is offering a fixed price issue amounting to ₹ 15.50 Crore, which includes a fresh issue of 61.98 lakh shares at an IPO price of ₹ 25 per equity share. The subscription period will run from March 27, 2025, to April 1, 2025, with the allotment date expected to be finalized on or about April 2, 2025. The shares will be listed on the BSE SME with a tentative listing date set for April 4, 2025.

Retaggio Industries specializes in the manufacture and sale of jewellery products, including gold jewellery, diamond jewellery, precious stones, and bullion in the form of coins and bars. The company’s offerings cater primarily to the B2B segment of the market, serving both domestic and international buyers.

Financial Overview:
The financial performance of Retaggio Industries demonstrates a steady growth trajectory, with revenues from operations for the year ending September 30, 2024 reaching ₹ 902.89 Lakh. The company reported EBITDA of ₹ 158.12 Lakh and a profit after tax (PAT) of ₹ 81.13 Lakh for the same period. These figures reflect the company’s potential for consistent growth in the coming years, underpinned by a strong track record in the jewellery industry.

For the fiscal years 2024, 2023, and 2022, Retaggio Industries has maintained a solid EBITDA and PAT, with a significant turnaround from a loss of ₹ -0.64 Lakh in FY2022. The pre-issue EPS stands at ₹ 3.57, and the post-issue EPS is expected to be ₹ 2.15 for FY24. This suggests that the IPO is fairly priced with a pre-issue P/E ratio of 7.00x and a post-issue P/E ratio of 11.65x.

GMP and Subscription Details:
As of the latest update, the Grey Market Premium (GMP) for the Retaggio Industries IPO is reported at ₹ 0, indicating no premium at present. This reflects the uncertain demand for the shares in the grey market, as no significant trading has been observed. Investors should note that GMP is not a reliable indicator of future listing price or gains and should not influence investment decisions.

The IPO has witnessed minimal subscription on its first day, with a subscription ratio of 0.05x as of 11:00 AM on March 27, 2025. Investors can follow real-time updates on the BSE website for further subscription status.

Investment Considerations:
Retaggio Industries aims to utilize the net proceeds from the IPO for two key objectives:

1. Repayment/prepayment of certain debt facilities amounting to ₹ 208.00 Lakh.

2. Working capital requirements, for which ₹ 3,488.48 Lakh is allocated.

Despite the company’s growth potential, investors should be cautious given the GMP of ₹ 0, which indicates low investor interest at this stage. The company’s price-to-earnings ratio (P/E ratio) is relatively low, suggesting that the stock might be fairly priced, but investors should be mindful of the industry risks.

Recommendation:
Based on the current GMP and subscription trends, we recommend avoiding the Retaggio Industries IPO for listing gains or long-term investment purposes. The financial performance is promising, but the current market conditions and lack of demand in the grey market raise concerns about potential listing gains. Investors seeking long-term investment should exercise caution until more information is available post-listing.

Allotment and Listing Process:
Once the allotment process is completed on April 2, 2025, investors can check their allotment status by visiting the registrar's website. The minimum lot size for retail investors is 6,000 shares, requiring an investment of ₹ 1,50,000, while High-Net-Worth Individuals (HNIs) need to apply for at least 12,000 shares (2 lots), amounting to ₹ 3,00,000.

Conclusion:
Retaggio Industries presents a valuable opportunity for investors who are looking to participate in the gems and jewellery sector, but the lack of strong demand signals in the IPO’s early subscription and the grey market should be a point of consideration. Caution is advised for those looking at quick listing gains, while long-term investors may want to observe the company’s performance post-listing before making any decisions.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Aten Papers & Foam Limited.

The Current active IPO are Retaggio Industries Limited,Identixweb Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

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